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Price Elasticity of Supply on a Graph definitions

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  • Supply Curve
    Graphical representation showing the relationship between price and quantity supplied, typically sloping upward.
  • Elasticity
    Measure of responsiveness of quantity supplied to changes in price, varying along different supply curves.
  • Perfectly Elastic Supply
    Situation where any price change leads to infinite change in quantity supplied, depicted as a horizontal line.
  • Perfectly Inelastic Supply
    Condition where quantity supplied remains unchanged regardless of price, shown as a vertical line.
  • Elastic Supply
    Case where quantity supplied responds strongly to price changes, with the curve cutting the price axis.
  • Inelastic Supply
    Scenario where quantity supplied responds weakly to price changes, with the curve cutting the quantity axis.
  • Unit Elastic Supply
    Situation where percentage change in quantity supplied equals percentage change in price, with the curve passing through the origin.
  • Price Axis
    Vertical axis on a graph representing different possible prices for a good or service.
  • Quantity Axis
    Horizontal axis on a graph representing different possible quantities supplied.
  • Origin
    Point where the price and quantity axes intersect, indicating zero price and zero quantity.
  • Upward Slope
    Characteristic of supply curves indicating that higher prices are associated with higher quantities supplied.
  • Horizontal Line
    Graphical feature representing perfect elasticity, where supply is infinitely responsive to price.
  • Vertical Line
    Graphical feature representing perfect inelasticity, where supply does not change with price.
  • Axis Intersection
    Location where a supply curve crosses either the price or quantity axis, indicating elasticity type.